Liability insurance concerns specified legal liabilities under a policy. Public liability, product liability and professional indemnity address different types of activity or allegation and should not be treated as substitutes without checking the wording.
The distinction that matters
Damage to your own property, rectifying a defective product and a third party’s liability claim can be different losses. A contractual promise can also go beyond the liability a policy accepts.
What to check
- The declared activity and insured legal entity.
- The type of injury, damage or financial loss.
- Contractual liability and professional-service exclusions.
- Defence costs, limits and notification conditions.
Example to discuss
Ask how a customer injury differs from an allegation of incorrect advice, and identify the relevant section rather than relying on the broad word liability.
This is a hypothetical comparison, not a customer claim or a determination of cover.
Sources and further reading
General information only. The policy, schedule and applicable rules determine the actual position. For a personal decision, use an appropriately qualified adviser or the relevant provider.